The National Council (Staff Side) of the Joint Consultative Machinery has formally approached Prime Minister Narendra Modi seeking significant revisions to the Terms of Reference for the upcoming 8th Pay Commission. In a crucial letter also addressed to Finance Minister Nirmala Sitharaman, the employee representatives have put forward several demands that could impact millions of central government employees and pensioners.
Key Demands for 8th Pay Commission Revisions
The NC JCM, led by Secretary Shiva Gopal Mishra, has emphasized that amending the Terms of Reference is essential to protect the interests of both serving and retired employees, including armed forces personnel. The council argues that the current framework requires substantial modifications to address long-standing concerns of the government workforce.
According to the communication, multiple central government employee unions have been consistently writing to the Centre since the announcement of the 8th Central Pay Commission's Terms of Reference. The Confederation of Central Government Employees & Workers also submitted similar demands to the finance ministry earlier this week, indicating widespread consensus among employee groups.
Specific Amendments Requested by Employee Bodies
The National Council has outlined six primary changes it wants incorporated into the Pay Commission's mandate:
- Restoration of the stakeholders' expectations clause that was present in the 7th Pay Commission
- Explicit inclusion of pension revision provisions for all existing pensioners
- Return to the Old Pension Scheme for approximately 26 lakh employees currently covered under the National Pension System
- Removal of the phrase unfunded cost of non-contributory pension schemes from the document
- Official declaration of January 1, 2026 as the implementation date for the new recommendations
- Provision of 20% interim relief to employees and pensioners to combat inflation
Critical Issues Highlighted in the Proposal
The absence of the stakeholders' expectations clause has been particularly criticized by the NC JCM. The council noted that this phrase was an integral part of the 7th Pay Commission's Terms of Reference and its removal sends a discouraging signal to employees about their representation in the process.
Regarding pension matters, the employee body highlighted that while the government has verbally assured that the 8th Pay Commission will cover pensioners, the official Terms of Reference lack specific mention of pension revision. The NC JCM has requested inclusion of several pension-related conditions, including restoration of commutation after 11 years, 5% additional pension every five years post-retirement, and comprehensive revision coverage for all pensioners.
The demand for Old Pension Scheme restoration remains a cornerstone of the employee groups' agenda. The letter explicitly asks the 8th Pay Commission to include provisions for restoring OPS for employees who joined government service on or after January 1, 2004. The council describes this as reflecting genuine concerns about financial security during retirement years.
The employee representatives have also objected to the characterization of pension schemes as unfunded costs, arguing that this terminology unjustly treats constitutionally guaranteed pension rights as fiscal burdens rather than legitimate employee benefits.
Implementation Timeline and Interim Measures
The NC JCM has sought clarity on the effective date of the 8th Pay Commission's recommendations, requesting official confirmation that January 1, 2026 will serve as the implementation date. Additionally, the council has proposed a 20% interim increase in basic pay and pension to help employees manage rising living costs until the Commission finalizes and submits its comprehensive report.
The employee body stated that such interim measures would demonstrate the government's empathy towards both serving and retired employees who form the essential backbone of India's public administration system. The proposed changes aim to create a more balanced and employee-friendly framework for the 8th Pay Commission's deliberations.
